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stock recommendation, stock investment information
Begin part 3 of 3
THE PLAYS
Good movers: ALXN; AMAG; IIG
Tuesday night play results:
BRLI: Tested the 18 day EMA and rallied. Right on the cusp of the breakout.
CRDN: Gapped higher but faded for a modest loss. Not bad as it gets the fluff out of the move and sets up a better buy.
FCX: Still in the handle. Volume remains elevated.
URBN: Took a breather after that strong move. Still set to continue the breakout.
New Plays:
Upside:
Play Date: 12/06/2006
APH (Amphenol Corp.--$68.80; +0.06; optionable): Fiber optic, electronic, electrical connectors, coax, flat-ribbon cables
http://biz.yahoo.com/p/a/aph.html
STATUS: Ascending triangle. Solid breakout in September from a 4.5 month cup with handle, and then a run higher up the 18 day EMA (now at 68.04). It moved to 70 on the run and then fell into the current 7 week base using the 50 day EMA (66.24) as support, making higher lows above that level and below the constant top at 70. APH is building up pressure, the pressure that squirts the watermelon seed higher. This is a good intermediate consolidation pattern after the breakout from a more traditional base such as the cup with handle. It often leads to much greater gains in the run, and APH is set up well to show us the breakout and give us that run.
Volume: 302.5K Avg Volume: 554.171K
BUY POINT: $69.68 Volume=831K Target=$79.95 Stop=$67.95
POSITION: APH DN - Apr. $70c (49 delta) &/or Stock
http://www.investmenthouse.com/ci/aph.html
Play Date: 12/06/2006
BRCM (Broadcom--$34.49; +0.68; optionable): Semiconductor integrated circuits
http://biz.yahoo.com/p/b/brcm.html
STATUS: Test 200 day SMA. BRCM did not test further but instead recovered the 200 day SMA (33.75) Wednesday. The stock is in the recovery mode after a big 2005 and a huge Q1 2006. After that you could stick a fork in it and it fell into the current 9 month base. It is now rebuilding, coming back to form the right side of the base in November. Looking for volume to come back in as it continues this move off of the 200 day and continues building the right side of its base.
Volume: 13.6M Avg Volume: 17.627M
BUY POINT: $34.72 Volume=18M Target=$41.72 Stop=$33.11
POSITION: RCQ EG - May $35c (56 delta) &/or Stock
http://www.investmenthouse.com/ci/brcm.html
Play Date: 12/06/2006
DO (Diamond Offshore--$80.92; +1.56; optionable): Offshore oil and gas drilling
http://biz.yahoo.com/p/d/do.html
STATUS: Cup. Volume is coming back the past two weeks as DO starts up the right side of its 7 month cup base. It broke through the 200 day SMA (78.48) last week, tested that level Monday and Tuesday, and then was back up on Wednesday. A solid leader in the last energy run, DO is set up well to make another run here. Like how it has so much room to make its run without having to forge new high territory. Want to see a bit more volume as it continues this break higher after testing the 200 day SMA. Well positioned.
Volume: 3.512M Avg Volume: 3.851M
BUY POINT: $81.55 Volume=4.2M Target=$99.45 Stop=$78.32
POSITION: DO CP - Mar. $80c (57 delta) &/or Stock
http://www.investmenthouse.com/ci/do.html
Play Date: 12/06/2006
NTGR (Netgear--$26.18; +0.49; optionable): Networking products for home and small business users
http://biz.yahoo.com/p/n/ntgr.html
STATUS: Breakout test. NTGR was a new issue in mid-2003. It is currently testing the breakout from a 14 month double bottom, the second big base for the stock since it IPO'd. It gapped higher in late October, blasting out of that base. It has spent the past 6 weeks testing, giving us a head fake along the way in mid-November. The past two weeks it has held above the 50 day EMA (25.47), however, working laterally, stopping the bleeding back on the test. Volume has jumped this week to average, moving above average Wednesday as NTGR started back up. Looking to move in on a further rally on volume as NTGR follows the money flow higher.
Volume: 839.085K Avg Volume: 686.132K
BUY POINT: $26.39 Volume=1M Target=$31.72 Stop=$24.98
POSITION: TUD CE - Mar. $25c (65 delta) &/or Stock
http://www.investmenthouse.com/ci/ntgr.html
Still ready to move:
AMT
BRLI
FCX
OIS
Good Investing!
Jon L. Johnson and your IH Alerts Team
All of the foregoing is commentary for informational purposes only. All statements and expressions are the opinion of Online Investment Services, LP. or its paid consultants and are not meant to be a solicitation or recommendation to buy, sell, or hold securities. We are not licensed or registered in the securities industry. The information presented herein and on our related web site has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolio of Partners in Online Investment Services, LP. or its paid consultants may, in some instances, include securities mentioned herein and on our web site. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors.
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stock recommendation
stock investment information
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